I think you're misunderstanding the supposed scheme. There is nothing in the article suggesting this is about them taking new loans with the intent to default o

I think you're misunderstanding the supposed scheme. There is nothing in the article suggesting this is about them taking new loans with the intent to default on them. Or even of them taking new loans at all. The idea is that real estate companies will walk away from all their current properties that are underwater, and default on the old loans. The banks have to offload the buildings for (supposedly) pennies on the dollar. These companies will snatch up those deals with the money they're hoarding now. ^- No new loans being defaulted on there. So, where's the profit? It'd have to be from re-buying the same properties at well below fair market prices. Is that possible? Presumably in that kind of environment loans you can't get a loan for commercial real estate (so there's few possible buyers, only those with cash in hand) and at the same time the banks would be desperate to sell. So, sure, maybe the prices would temporarily be suppressed well below what should be the fair market price. ^- No new loans being defaulted on here either. Again, I think the article is bullshit and flagged it, but you are misreading it and doubling down on the misreading.